Overview

Amazon Warehousing and Distribution (AWD) is Amazon's upstream bulk storage and distribution service that allows sellers to store inventory at lower rates before it moves into Fulfillment by Amazon (FBA) centers. Effective in 2026, Amazon is revising AWD fee rates and introducing differential storage pricing between regions. Understanding the tiered rate structure is essential for sellers looking to optimize their long-term storage costs.

Key Points / What Sellers Need to Know

• Revised fee rates take effect in 2026 — Amazon is updating AWD pricing and introducing regional pricing differences. Sellers should review the new rate schedules to understand how their costs may change.
• Three storage rate tiers apply per SKU — AWD uses a tiered pricing model with a base rate, a discounted smart storage rate, and a premium rate, each determined by how you manage replenishment and inventory levels.
• Smart storage rate rewards auto-replenishment — Sellers who use AWD's auto-replenishment feature and maintain sufficient inventory days of supply can qualify for a lower storage rate automatically.
• Eligibility is assessed monthly — Amazon evaluates each SKU's qualification for the smart storage rate on the 25th of each month, with updated status published by the 28th.
• Base rate applies to manual replenishment — If you manage your own replenishment to fulfillment centers rather than using auto-replenishment, the standard base rate applies. This rate is no longer determined by inbound carrier method.

How AWD Rate Tiers Work

AWD assigns one of three storage rate tiers to each SKU based on your replenishment method and inventory management practices. The base rate is the standard tier applied when sellers manually manage the movement of inventory from AWD to FBA fulfillment centers. Notably, Amazon has decoupled the base rate from inbound carrier method, meaning the rate no longer depends on how products are shipped into AWD. The smart storage rate offers a discount for sellers who leverage AWD's automated replenishment system and maintain healthy inventory levels. A premium rate may also apply under certain conditions, and sellers should consult the AWD dashboard for details on eligibility and specifics.